Augmenting the Retail Experience

The retail industry has been seeing ongoing sustainability challenges. We should all care and discuss our experiences, including those of us in eCommerce, along with the front line of retail workforce, leadership, and data analysts. Most of all, those on the front lines of this battle can contribute to increasing success, if their voices are heard.

I want to hear you roar. 

Challenges that customers have within any retail outlet could be captured, and converted into data for analysis. Not many businesses in general are developed in this area quite yet. With technology such as SAPvoice around the corner (see the link in the first comment) the organizations that have the most to invest seem they may end up with an advantage. But, could retail collect information to help their customer's experiences, on tech resources that are currently available without breaking the bank? I think so.

I’m going to share in idea. Let’s call it the embryo on an idea. I am calling on you to join me in thinking this through. This idea could be a user-friendly retail experience tool, that improves the customer experience, and creates a data capture process that ties into the Point of Sale (POS) system.

Within the retail POS is data that is analyzed already. This is used in efforts to study anything from "transactions per hour", "items per transaction", "promotional up-sales", and so much more that is all relative to operational decision-making.

The Augmentation of Retail

I will present this idea based on one of the most notoriously frustrating retail environments – the home improvement center. It's a familiar feeling to be sent on a wild goose chase by associates that aren’t familiar with where products are currently located. Customers lose so much time going back-and-forth across a warehouse the size of a football field.

The associates often aren’t aware of what products are compatible with other products either, so if you haven't done your homework on all the components of your purchase previous to your trip to the store, additional time is lost exploring for any options you can find. In my experience, when I need help in a home improvement center, I find that help less than 50% of the time.

So there’s two initial opportunities here to look at.

Product Location: To be fair, home improvement retail is trying to improve this, in some cases. If you go to some retail websites, and you know the exact product you seek, they could have the location of the product, telling you the aisle, bay, endcap, etc… these still are not always obvious when you arrive, especially the endcap locations. You’re also using your own cell phone data to start off with, so there’s a phantom cost to it.

Associate Knowledge: Most often retail stores do not pay a knowledgeable associate what they are worth. This creates perma-turnover. There is such energy and cost associated with this. I would focus on employee retention. A gainful income & rich company culture changes it’s employee turn-over profile. It would yield more to the bottom line, with less “Help Wanted” ads to pay for, less applicant interviews and hiring time vested, less onboarding boarding time, minimizing distribution of costly new-hire materials, etc… but wait - there's more!

To compliment the start of that financial momentum, the staff will acquire more knowledge organically with tenure. Plus, when an associate is treated with the importance of a sustainable career, they will take additional initiative to learn (it's just human nature), and their effectiveness with customers will increase transactions, due to less walk-outs. Customers would have a chance to build trust with stores they can shop at that provide guidance, and this trust will also increase transactions.

Here’s the direction I would pursue.

I would strategize most or all of end caps to include digital Augmentation Stations. Naturally, it would need a catchy name for customers to identify with, but we'll go with that for now.

Customers would be welcome to use it themselves, or with the guidance of an associate. It would feature a large touch screen. Interacting with stations helps you find products, prices, quantities in stock, descriptions and specs, along with the item location in the store.

You would be informed if there was currently a coupon for that item, or a similar item (coupons would be sent to your phone, which would connect through a password-free WiFi connection).

Before you walk away from the Augmentation Station, you could then touch a map icon, that includes a “you are here” symbol, and a symbol showing your product(s) location(s), and it would highlight a pathway. Now you know the direction you need to walk without looking up at the aisle numbers to figure it out. You could map several products and establish a shopping route, if you choose.

Each product should have its own page(s) of info and data, including the manufacturer Safety Data Sheets (formerly MSDS, now simply SDS) for quick glances at safety information. I would want my customers to easily email the SDS documents to themselves. What if a child ingests a toxin, or gets in their eye? You've set your customer up with the information on how to react initially, and the ability to pass the document along to a medic, if needed. A medic can succeed faster with accurate information up front.

The station would be able to increase the size of the fonts, so everyone can actually read the ingredients that are in that bug killer you heard works so well. We could shop with savvy consumer knowledge for hard-to-read packaging, since some manufacturers print so small you can’t easily read the label.

Let's make this easy, so customers can get to the cashier quickly, and with the confidence they have found the perfect product!

All compatible products would be accessed by compatibility filters at the station. In this environment, your Augmentation Station would include recommended safety equipment, as well. For example, you’re inquiring about a Dewalt miter saw. The station pulls up the page, with picture links to similar products, displaying their prices and an "in stock" or "out of stock" symbol. There would also be picture links for the compatible saw stands, saw blades, properly rated extension cords, safety glasses, earplugs/earmuffs, etc... Just click for information and the location!

Now we’re reminding someone that may not think about safety gear when they arrive, that these items are recommended. No-pressure upselling such as this would increase items-per-transaction, and make the customer feel they have all angles considered when interacting with our Augmentation Station, or an associate well-versed on this customer support system. Isn’t this a better way to upsell your patrons, rather than make them walk through a maze of random products intentionally, using "the impractical store layout scheme" in hopes they will pick something else up?

If the product sought is out of stock, the customer would immediately have a chance to purchase it at a discount, a reward for their patience and loyalty, and a sale otherwise lost elsewhere. This discount would be sent to their cellphone via WiFi.

The customer would benefit if the system showed customers how long the average wait in the checkout lines are. So many POS systems run this data already. Transactions per hour are captured by the POS. Divide this by the number of cashiers, which is also in the POS It's a simple formula. This could always be on display on the screen.

This Augmentation Station has already improved the customer experience, but this was just the first phase! The data gathered at these stations will greatly improve their future experiences, as the managers and purchasing agents analyze the information to increase the store’s strategic effectiveness.

What data am I talking about, and how will it affect the future shopping experience for customers?

Let’s start with the basics:

• Date/Time Stamp
• Manager On Duty
• Location of Store

Then we can look at localized information for analysis:

• Location within store (exactly where is this inquiry happening?)
• Is the product that's being searched currently discounted with marketing ads running? (This would be used for identifying successful marketing campaigns, and could be manipulated to measure multiple marketing channel performances.)
• Was a coupon (or multiple) transferred to cell phone for use at POS?
• Which coupons were transferred/used (Does it affect what brand or model is purchased when comparing the original brand, if one was typed in? This would give the purchasing department negotiating power.)
• All keyword captures

What kind of information would we glean from random keywords?

1. What are customers looking for? When considered with “location within store”, managers can see if there is a trend of customers going to a wrong aisle for a product. If there is, could that be happening due to merchandising decisions, or the need to improve signage?
2. This could also help with identifying successful marketing channels, for the products publicly advertised.
3. Are the customers looking for a service, or an expert associate to help them understand something else about the product? (That expert associate would report the discussion, and this information would be added to the augmentation data matrix).
4. If keywords used are colors, seasonal descriptors, brand names, product features, or other categorical identifiers, this would educate the managers and purchasing department on current buying trends, allowing for better use of purchasing budgets, and better targeting on inventory levels for the local clientele.

Again, these thoughts are just an embryo of an idea, think of where this could lead.

With a tool like this, supported with an ongoing training modules, every retail associate would provide more value, and have a greater opportunity to learn about their products. The database of information is always on-hand, always growing, and always educating.

What ideas do you have to help the retail industry? Do you have ideas on additiona data to gather with a system like this, or other solutions altogether that you would like to see attempted? We all have a voice here, so together we make some noise!

Let's raise a ruckus, shall we?!?